The Build-Operate-Transfer Model: A Strategic Gateway for Call Center Outsourcing in the Philippines

For many multinational corporations, the decision to establish a significant offshore presence is fraught with complexity. The allure of cost savings and access to a vast talent pool is often tempered by the daunting prospect of navigating unfamiliar legal, regulatory, and operational landscapes. This is where the Build-Operate-Transfer (BOT) model emerges as a powerful and increasingly popular strategic alternative to traditional outsourcing or direct foreign investment. In the context of the call center industry in the Philippines, the BOT model offers a de-risked, phased approach to market entry, allowing companies to leverage the expertise of a local partner to build a world-class operation before taking full ownership.

According to a report by Deloitte, the BOT model is gaining traction as a preferred sourcing strategy for companies seeking to balance control and flexibility. It is a hybrid model that combines the best of both worlds: the turnkey convenience of outsourcing and the long-term strategic control of a captive operation. The model is particularly well-suited for companies that are new to the Philippines or that lack the internal resources and expertise to build a large-scale call center from the ground up.

In a typical BOT engagement, a company partners with a local BPO provider to build and operate a dedicated call center on its behalf. The BPO provider is responsible for all aspects of the setup, including site selection, facility construction, recruitment, training, and technology implementation. The provider then operates the call center for a pre-defined period, typically 3-5 years, during which time it is responsible for meeting all of the client’s performance targets and service level agreements (SLAs). At the end of the contract period, the client has the option to take full ownership of the call center, including all of its assets, employees, and processes.

“The BOT model is the ultimate ‘try before you buy’ for large-scale offshoring. I’ve seen companies save millions in upfront capital and avoid years of painful learning curves by leveraging a local partner’s expertise. It’s not just about building a facility; it’s about incubating a corporate culture and operational DNA in a foreign land with a trusted guide.” – Ralf Ellspermann

This phased approach provides a number of significant advantages. It allows the client to test the waters in the Philippines without making a large, upfront capital investment. It also gives them time to learn the local market and to develop a deep understanding of the operational and cultural nuances of doing business in the country. And, perhaps most importantly, it provides them with a fully-functional, high-performing call center that is ready to be integrated into their global operations from day one.

The Three Phases of the BOT Model

The BOT model is a structured, three-phase process that is designed to minimize risk and maximize value for the client.

Phase 1: Build

This is the initial setup phase, where the BPO provider takes the lead in building the call center from the ground up. The provider is responsible for all aspects of the build-out, including:

• Site Selection and Facility Construction: The provider leverages its local knowledge and real estate expertise to identify the optimal location for the call center and to manage the construction and fit-out of the facility.

• Recruitment and Training: The provider taps into its extensive recruitment network to hire a team of highly-skilled and experienced call center agents. It also develops and delivers a comprehensive training program that is customized to the client’s specific needs and requirements.

• Technology Implementation: The provider designs and implements a state-of-the-art technology infrastructure, including the latest call center hardware and software, to support the client’s operations.

Phase 2: Operate

Once the call center is built, the BPO provider takes on the responsibility of operating it on a day-to-day basis. The provider is responsible for all aspects of the operation, including:

• Service Delivery: The provider is responsible for delivering high-quality call center services that meet or exceed the client’s SLAs.

• Performance Management: The provider implements a robust performance management framework to monitor and measure the performance of the call center and to identify areas for improvement.

• Quality Assurance: The provider implements a comprehensive quality assurance program to ensure that all customer interactions are handled in a professional and courteous manner.

Phase 3: Transfer

At the end of the contract period, the client has the option to take full ownership of the call center. The transfer process is carefully planned and executed to ensure a smooth and seamless transition. The BPO provider works closely with the client to transfer all of the assets, employees, and processes to the client’s control. The provider also provides ongoing support and assistance to ensure that the client is able to successfully manage the call center on its own.

“The transfer phase is the most critical part of the BOT model. It’s not a simple handover; it’s a carefully orchestrated transition of people, processes, and culture. The goal is to make the transfer so seamless that the customer on the other end of the line doesn’t even notice a change. That’s the art of a successful BOT engagement.” – Ralf Ellspermann

The Benefits of the BOT Model

The BOT model offers a number of significant benefits for companies looking to establish a call center presence in the Philippines.

• Reduced Risk: The BOT model allows companies to de-risk their market entry by leveraging the expertise and experience of a local partner. The BPO provider assumes all of the upfront risk, and the client only takes ownership of the call center once it is fully operational and performing at a high level.

• Lower Upfront Costs: The BOT model requires a significantly lower upfront capital investment than building a captive call center from scratch. The client is able to conserve its capital and to invest it in other areas of its business.

• Faster Time to Market: The BOT model allows companies to get their call center up and running much more quickly than if they were to build it themselves. The BPO provider has the local knowledge and expertise to navigate the complexities of the local market and to get the call center operational in a fraction of the time.

• Access to Expertise: The BOT model gives companies access to the deep expertise and experience of a leading Philippine BPO provider. The provider has a proven track record of building and operating high-performing call centers, and it can bring that expertise to bear on the client’s behalf.

• Flexibility and Control: The BOT model provides a high degree of flexibility and control. The client has the option to take full ownership of the call center at the end of the contract period, but it is not obligated to do so. This gives the client the flexibility to adapt to changing market conditions and to make the decision that is best for its business.

Case Study: A Global Financial Services Firm’s Entry into the Philippines

A global financial services firm was looking to establish a large-scale call center in the Philippines to support its growing customer base in North America. The firm had no prior experience in the country and was hesitant to make a large, upfront capital investment. The firm decided to partner with a leading Philippine BPO provider on a BOT engagement.

The BPO provider built a state-of-the-art, 1,000-seat call center for the firm in just 12 months. The provider then operated the call center for the next 3 years, consistently exceeding the firm’s SLAs for customer satisfaction and first-call resolution. At the end of the 3-year period, the firm exercised its option to take full ownership of the call center. The transfer was seamless, and the firm was able to integrate the call center into its global operations without any disruption to its business.

The BOT engagement was a resounding success. The firm was able to establish a high-performing call center in the Philippines with minimal risk and a lower upfront investment. The firm was also able to gain a deep understanding of the local market and to develop a strong relationship with its local partner.

“The BOT model allowed us to enter the Philippine market with confidence. We were able to leverage our partner’s expertise to build a world-class operation, and we were able to do it in a way that was both cost-effective and low-risk. It was the perfect solution for us.” – Ralf Ellspermann

Key Success Factors for a BOT Engagement

While the BOT model offers significant advantages, its success depends on a number of critical factors. 

Companies that are considering a BOT engagement should pay close attention to the following:

Selecting the Right Partner

The choice of BPO provider is the single most important decision in a BOT engagement. The provider should have a proven track record of building and operating high-performing call centers in the Philippines. They should also have deep expertise in the client’s industry and a strong understanding of the client’s business requirements. 

PITON-Global, as the country’s leading call center outsourcing advisory firm, can assist companies in identifying and evaluating potential BOT partners.

Defining Clear Objectives and SLAs

The client and the BPO provider should work together to define clear objectives and service level agreements (SLAs) for the call center. These should be measurable, achievable, and aligned with the client’s overall business strategy. The SLAs should cover all aspects of the operation, from customer satisfaction and first-call resolution to agent attrition and cost per contact.

Establishing Strong Governance and Communication

A successful BOT engagement requires strong governance and communication between the client and the BPO provider. The two parties should establish a joint governance committee that meets regularly to review performance, address issues, and make strategic decisions. They should also establish clear communication protocols to ensure that information flows freely and that both parties are aligned on all aspects of the operation.

Planning for the Transfer

The transfer phase should be planned from the very beginning of the BOT engagement. The client and the BPO provider should work together to develop a detailed transfer plan that outlines the steps that will be taken to transition the call center to the client’s control. This plan should address all aspects of the transfer, from the transfer of assets and employees to the transfer of knowledge and processes.

“A successful BOT engagement is built on trust, transparency, and a shared commitment to excellence. It’s a partnership, not a transaction. Both parties need to be fully invested in the success of the operation, and they need to be willing to work together to overcome any challenges that may arise.” – Ralf Ellspermann

The Future of the BOT Model in the Philippines

As the Philippine call center industry continues to mature and evolve, the BOT model is likely to become an even more popular sourcing strategy for multinational corporations. The model offers a unique combination of flexibility, control, and risk mitigation that is well-suited to the needs of today’s global businesses. With the continued support of the Philippine government and the ongoing investment in infrastructure and talent development, the country is well-positioned to remain a global leader in the BOT space for years to come.

According to a recent report by McKinsey, the Philippines is expected to remain one of the top destinations for offshore call center services, with the BOT model playing an increasingly important role in attracting new foreign investment. The report highlights the country’s strong talent pool, competitive cost structure, and favorable business environment as key factors driving this growth.

A Strategic Pathway to Offshore Success

The Build-Operate-Transfer model represents a sophisticated evolution in the world of call center outsourcing. It is a strategic pathway for companies to establish a significant offshore presence in the Philippines while mitigating the risks and complexities of market entry. By partnering with a trusted local provider, companies can leverage a proven ecosystem of talent, technology, and operational excellence to build a world-class call center that is tailored to their specific needs. 

The BOT model is more than just a sourcing strategy; it is a long-term partnership that can help companies to achieve their strategic objectives and to create a sustainable competitive advantage in the global marketplace.

References

• Deloitte. (2023). “2023 Global Shared Services and Outsourcing Survey.” 
• McKinsey & Company. (2024). “The Future of Business Process Outsourcing in Asia.”